Tax Differences EXPLAINED: LLC, S Corp, Partnership, Sole Prop

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  • เผยแพร่เมื่อ 1 ก.พ. 2023
  • In this video, I explain the tax differences between a sole proprietorship, LLC, S Corporation and Partnership. I also explain how much tax you might owe for each entity type, how to make those tax payments and when those payments are due so you don’t have to worry about late payment or filing penalties.
    Links to websites used in video:
    Federal Income Tax Calculator: www.ameriprise.com/financial-...
    State Tax Information: taxfoundation.org/publication...
    When to Pay: www.irs.gov/faqs/estimated-ta...
    How to Pay with Direct Pay: www.irs.gov/payments/direct-pay
    How to Pay with EFTPS: www.eftps.gov/eftps/direct/Ef...
    🔗Useful Links:
    🌐 Website: navimarajcpa.com/
    📋 Enroll In My Course - Small Business Taxes: From Knowing Nothing to Savings Thousands: navimarajcpa.com/learn/
    📁 Setup your LLC or Corporation for FREE:
    FileYourBusiness.com: www.fileyourbusiness.com/
    Inc Authority: bit.ly/incauthoritycoupon
    IncFile: bit.ly/incfilecoupon
    ZenBusiness: bit.ly/zenbusinesscoupon
    If you learned something from this video, please like and subscribe and follow me on my various social media handles below. If you would like to contact me with a specific question, please visit my website or leave me a comment.
    Website: www.navimarajcpa.com
    Email: navi@navimarajcpa.com
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    This video was created for informational purposes and it is not to be construed as legal and tax advice specific to your unique situation. Some of the links above are affiliate links which means that if you purchase a product or service with the provided link, I may receive a commission with no additional cost to you.
    © Navi Maraj CPA PLLC. All rights reserved.
    #scorp #llc #taxes #explained

ความคิดเห็น • 319

  • @rogersmj
    @rogersmj 4 หลายเดือนก่อน +28

    This is by far the clearest explanation of this topic I have yet run across. Very well presented, having apples to apples examples in a clean spreadsheet format, as opposed to the random whiteboard scribblings that some others do that are really hard to follow.

    • @alansanchez3560
      @alansanchez3560 หลายเดือนก่อน

      Great video! It helps understand the basics I’m going to keep watching at the more complex topics!

    • @lorapalacios8088
      @lorapalacios8088 หลายเดือนก่อน

      If i want to open my own behavioral health/ mental healthy therapy practice and I am a Licensed Clinical Social worker in California can I do a partnership? I am told I cannot do an LLC.

  • @lunamorris2091
    @lunamorris2091 4 หลายเดือนก่อน +4

    Would like to see more of these types of videos where small business owners can get educated on how to understand financials and use them to improve their business

  • @josephinebardot8403
    @josephinebardot8403 9 หลายเดือนก่อน +4

    I’m more than happy to discover this channel. I need to thank you for your time for this, particularly a fantastic watch!! I liked every little bit of it and I have subscribed you to look at new posts all the time.

  • @carlosgarcia4012
    @carlosgarcia4012 10 หลายเดือนก่อน +3

    Hi Navi. This video is great. I have tried to find a video with an expatiation like this one you just did and I have not found anything like this. You are great. Thank you so much!!!

  • @Rico-ns5dt
    @Rico-ns5dt 2 หลายเดือนก่อน +1

    Man i need me a powerball jackpot because this is exhausting 😂😂😂 great video

  • @finalflare2049
    @finalflare2049 11 หลายเดือนก่อน +3

    Best video online. Please keep up with the visuals of your explanations. It helps visual learning a ton.

  • @gummybears-n-crime1317
    @gummybears-n-crime1317 4 หลายเดือนก่อน +6

    This was excellent and helped me decide to open an s corp vs LLC as an independent contractor

  • @melittlelad
    @melittlelad 5 หลายเดือนก่อน +3

    This is exactly the kind of video I was looking for, super basic but thoroughly explained, thank you!

  • @xpress-notary-pro
    @xpress-notary-pro 7 หลายเดือนก่อน +18

    ☑ I don't leave a lot of reviews, but this video and another one in your list completely lifted the scales from my eyes. I was blind and now I see! You helped me make a decision about whether to go the S-Corp route and saved me from making a huge mistake. Thank you for bringing free content that is completely useful on its own. I have you bookmarked. I definitely want to take your course once I get my business up and running.

    • @cynthiagarcia2784
      @cynthiagarcia2784 5 หลายเดือนก่อน +2

      Same as you. I’m started by own business and this has definitely saved me lots of money before starting.

  • @katiehoponick1141
    @katiehoponick1141 9 หลายเดือนก่อน +1

    Thank you so much!! Your video was so helpful in gaining a clear understanding of the different business models, how the taxation flows, and the importance of each part. Very Informative, thank you

  • @islandst.maarten7081
    @islandst.maarten7081 10 หลายเดือนก่อน +2

    I'VE WATCHED A LOT OF VIDEOS BUT THIS ONE WAS VERY UNDERSTANDABLE. THANKS

  • @parleygentry5008
    @parleygentry5008 2 หลายเดือนก่อน +1

    Super clear explanation. Setting the numbers up like that gave me a visual idea of how I should set up the business

  • @alihakim8680
    @alihakim8680 หลายเดือนก่อน

    Navi, this was an absolutely phenomenal explanation compared to everything else I’ve seen on YT. I appreciate the disclaimers regarding QBI and SE deductions, since many people leave these out and don’t mention it. Your clear ability to share knowledge makes me want to use your course. Thank you!

  • @cathyjohnchang9812
    @cathyjohnchang9812 3 หลายเดือนก่อน +2

    Excellent job! You explained very clearly with a clean easy understanding spreadsheet. Really appreciate it.

  • @corystheboss
    @corystheboss ปีที่แล้ว +128

    Taxes should not be this confusing…

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน +24

      Agreed but hope I was able to make it a little easier for you.

    • @vikkifairchild9858
      @vikkifairchild9858 9 หลายเดือนก่อน +21

      Agreed. Also, taxation is theft. They literally tax you 2x literally every direction you go. But then they say, no dollar can be taxed twice. It’s bologna

    • @savageazzligee5970
      @savageazzligee5970 8 หลายเดือนก่อน +7

      He actually explained it so smoothly in my opinion. Plus he giving good examples with easy to understand numbers and this is my first time learning about business taxes. Only part I don’t completely get is where the $88,000 came from when at first it was $100,000 then the QBID made it $80,000. I’m just confused where the other $8,000 came from.

    • @nextgenerationsshow
      @nextgenerationsshow 7 หลายเดือนก่อน

      ​@@vikkifairchild9858How?

    • @jamisonmunn9215
      @jamisonmunn9215 6 หลายเดือนก่อน +5

      It's not, since the governments number one mandate is keeping the nation safe. Also a nation has clearly defined borders that requires people to go through a process to enter. Since the USA doesn't have those things currently all federal taxes are invalid and shouldn't be paid.

  • @mtmetzger
    @mtmetzger 4 หลายเดือนก่อน +1

    Excellent video! Thanks for being so precise with your explanations. You are really taking the stress out of the entire process.

  • @shaunquilty8201
    @shaunquilty8201 3 หลายเดือนก่อน

    You did a great job, explaining how each entity pays their taxes and what is required but you didn’t explain to me any advantages of what each one offers so you just wasted like an hour of my time and now I’m super convinced on why it’s just good to pay so I wanna do your taxes. Thanks.

  • @nickoliwade
    @nickoliwade 10 หลายเดือนก่อน +1

    Thank you for helping with taxes and your visuals were spot on , also keeping taxes interesting.

  • @MrElvin026
    @MrElvin026 3 หลายเดือนก่อน +1

    Very well explained, I’m CPA in Puerto Rico and is very important get an advisory from a CPA.

  • @anitacobb1973
    @anitacobb1973 2 หลายเดือนก่อน +1

    Outstanding!! I agree with Roger below. You provided the clearest explanation to date!!

  • @adamkalon7584
    @adamkalon7584 4 หลายเดือนก่อน +3

    I rearly leave comments but you are great!
    This is EXACTLY what I have been looking for so long. I graduated from financial university in Europe but now I live in the US and I need to understand your microeconomy regulations work. Your video is just a great example of top notch teaching, it helped my to obtain more clear vision on how to run my own company and what type of entity to choose. I didn't even know about QBID. I'm going to comple your whole course. Thank you again!

    • @ashburnconnecttv7860
      @ashburnconnecttv7860 2 หลายเดือนก่อน +1

      Rarely.

    • @adamkalon7584
      @adamkalon7584 2 หลายเดือนก่อน

      @@ashburnconnecttv7860 I wish I had someone who would correct me since I’m trying to improve my spelling. Thank you for noticing!

  • @mariabell8320
    @mariabell8320 5 หลายเดือนก่อน

    Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This TH-cam channel is very informative and effective.

  • @Mukimuki28
    @Mukimuki28 2 หลายเดือนก่อน

    Best video on tax differences !! thank you for taking the time to do this video 👏🏻👏🏻👏🏻👏🏻

  • @user-iq3xk4xu9b
    @user-iq3xk4xu9b 5 หลายเดือนก่อน

    Great explanation! Thank god I came across this video. Looking forward to watching the rest of your information. Thank you!

  • @denbestenmathchannel4180
    @denbestenmathchannel4180 4 หลายเดือนก่อน

    Great video! You do a nice job explaining a complicated topic. Thanks!

  • @amyroberts3922
    @amyroberts3922 4 หลายเดือนก่อน +7

    We are thinking about converting from a LLC to an S Corp. This was extremely helpful. Thanks!!

  • @edentajas1624
    @edentajas1624 11 หลายเดือนก่อน

    Thank you so much... this is very helpful. I am a freelancer and I need to learn more about US taxes.

  • @roberts7363
    @roberts7363 25 วันที่ผ่านมา +2

    Thanks for the video. Nice Fastback in the background ;). I once had a 66' Coupe.

    • @NaviMarajCPA
      @NaviMarajCPA  24 วันที่ผ่านมา +1

      My favorite comment by far!!!!

  • @riazgomez8100
    @riazgomez8100 11 หลายเดือนก่อน

    Navi!! I see many videos and feel like yours are the best to learn!! Hope to find you soon and would love to learn more from you

  • @nasariosantos1117
    @nasariosantos1117 2 หลายเดือนก่อน

    Navi, you do an excellent job teaching the layman !
    😊

  • @fixitfredhandyman
    @fixitfredhandyman 3 หลายเดือนก่อน

    extremely clear about all three categories. thank you.

  • @kasiwilliams5927
    @kasiwilliams5927 5 หลายเดือนก่อน

    Thanks for explaining I enjoyed following along the visuals and website.

  • @n.trs1788
    @n.trs1788 ปีที่แล้ว +5

    Thank you so much. This knowledge is invaluable and I better understand Sole vs. LLC and not as freaked out!

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน +1

      Great to hear! Thanks so much for the feedback and glad you're understanding things better.

    • @shamszaynreacts1993
      @shamszaynreacts1993 2 หลายเดือนก่อน

      @@NaviMarajCPA❤❤❤

  • @TripleLRusticDesigns
    @TripleLRusticDesigns ปีที่แล้ว +2

    This is incredibly helpful! Thanks so much!

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      Thanks for the feedback!

  • @xcalybur75
    @xcalybur75 23 วันที่ผ่านมา

    Fantastic info and great pacing. This is hard stuff for most people to wrap their head around and you did a great job. The only thing that would make it marginally better and might not be worth the time is to put together some slides you can show occasionally during the presentation, but I understand if it isn't worth it.

  • @nandakumars2845
    @nandakumars2845 11 หลายเดือนก่อน +18

    Spot on, exactly what I was looking to learn. Thank you for your time in helping everyone!
    I am new to forming an LLC and learned a lot through your videos.
    As an S-Corp, when exactly can you withdraw the "distribution" amount (60k in your example). You pay taxes on 88k anyways - is there a reason to leaving that distribution amount there?
    At the end of your video, you suggest that over 60k can go to a Roth. What about Pre-tax retirement contributions? SEP IRA not an option for S-Corp?

    • @cynthiagarcia2784
      @cynthiagarcia2784 5 หลายเดือนก่อน

      This is a great question. I would like to know this as well.

  • @Trader_Father
    @Trader_Father 10 หลายเดือนก่อน

    new LLC and this is exactly what i need to know, i am going to the s corp after watching this video.

  • @Furygasm
    @Furygasm 10 หลายเดือนก่อน

    Great video, very informative and well explained/structured. Only problem is that I need a Canadian version of this channel!

  • @wittyk8581
    @wittyk8581 16 วันที่ผ่านมา

    Fantastic content, I will absolutely 100% come back

  • @jocoll75
    @jocoll75 5 หลายเดือนก่อน

    Best video on tax differences.

  • @hot.alaska
    @hot.alaska 3 หลายเดือนก่อน

    thank you for taking the time to share your knowledge on this

  • @freddycuevas6595
    @freddycuevas6595 2 หลายเดือนก่อน +1

    Great Video! Thank you. If anyone knows in the S corp case there was 40k of Income and the rest Business Income 60k. The employer paid Medicare and Social security on 40k but didn't pay anything on the Business income of 60k for medicare or social security?

  • @munchkinm6929
    @munchkinm6929 8 หลายเดือนก่อน

    Very clear and educational video, thank you

  • @MariaRosales-uv2ls
    @MariaRosales-uv2ls ปีที่แล้ว +1

    Thank you. Very helpful content and well explained.

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      You're welcome! Thanks for the feedback.

  • @nickp8
    @nickp8 5 หลายเดือนก่อน

    You are phenomenal. Thank you for what you do!

  • @RedDragonProtection
    @RedDragonProtection 6 หลายเดือนก่อน

    Thank you for this video. It's exactly what I was looking for. I found your spreadsheet and will definitely adapt it into mine. I appreciate it. I subbed for you.

  • @joser08rodriguez
    @joser08rodriguez 11 หลายเดือนก่อน

    Great video I really liked the visual chart. Thank you.

  • @margaritagordon3142
    @margaritagordon3142 11 หลายเดือนก่อน

    This was very helpful!! Thank you!

  • @user-by7lo6zl5l
    @user-by7lo6zl5l 11 หลายเดือนก่อน +1

    Very informative. Thank you! How do you switch from an LLC to S Corp?

  • @Jay-es3vm
    @Jay-es3vm ปีที่แล้ว +1

    This was very helpful! Thank you so much!

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      You're welcome. Thanks for the feedback!

  • @rociozamora877
    @rociozamora877 หลายเดือนก่อน

    Excellent presentation!! 🎉❤

  • @kareemaestrada6734
    @kareemaestrada6734 ปีที่แล้ว +1

    This was awesome Navi!

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      Thanks for the feedback! 👍🏼

  • @nellycaldeira4145
    @nellycaldeira4145 4 หลายเดือนก่อน

    amazing video!!! WOOOW. I AM IMPRESSED!

  • @saheruddin06ify
    @saheruddin06ify 6 หลายเดือนก่อน

    Amazing video , well explained

  • @christopermontez6109
    @christopermontez6109 5 หลายเดือนก่อน

    Awesome info you broke down simply thanks and a pay roll company seems the way to go

  • @jukestaposition
    @jukestaposition 3 หลายเดือนก่อน

    Super helpful and clear! Thanks!

  • @mariesafaite-antoine20
    @mariesafaite-antoine20 3 หลายเดือนก่อน

    Very helpful! I will implement your advise

  • @jahmenj
    @jahmenj 2 วันที่ผ่านมา

    THANK YOU THANK YOU VERY MUCH… 🙏🏽
    I just subscribed 👌🏽👍🏽

  • @TheBookOfJane
    @TheBookOfJane 4 หลายเดือนก่อน

    Ok I am going to learn this stuff come heck or high water..... Thanks for your help. Great Channel!

  • @dipalir130
    @dipalir130 4 หลายเดือนก่อน

    this was really helpful, Thank you.

  • @fromjaxflorida
    @fromjaxflorida 5 หลายเดือนก่อน

    I'm trying to understand business taxation and this video helped me to understand the differences. I'm a visual person; listening and reading don't help me. Thank you.

  • @bichli
    @bichli ปีที่แล้ว +2

    excellent presentation!

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      Thanks so much!

  • @falgunipatel5776
    @falgunipatel5776 6 หลายเดือนก่อน

    Very informative. Thank u!

  • @ChrisGreen-fp3jd
    @ChrisGreen-fp3jd 3 หลายเดือนก่อน

    Thank you so much very informative.

  • @Sam-fz3mx
    @Sam-fz3mx 8 หลายเดือนก่อน

    Great video. Thank you!

  • @jlopez821able
    @jlopez821able 10 หลายเดือนก่อน

    This was so helpful! I’m trying to decide llc or S corp for my business salon in California

  • @MrMeli504
    @MrMeli504 2 หลายเดือนก่อน

    Great info, thanks so much.

  • @lavadog13
    @lavadog13 4 หลายเดือนก่อน

    Great video. The social security tax is more nuanced then described. There is a max amount that is held per year. I think you want to max that out as many years as possible to get max social security benefits at the end of the day.

  • @Crys_M1229
    @Crys_M1229 ปีที่แล้ว +1

    Thankyou. This was a good video.

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      Thanks so much! 👍

  • @MasterYourBooks
    @MasterYourBooks 11 หลายเดือนก่อน +3

    Hi Navi! I am very impressed with your teaching style and videos so I'll be investing in your course. Do you have an affiliate program for those of us that want to share you course with others? If YES, you can respond here so others know the answer and I will ask again once I locate how to ask questions inside your course. Great work!!

  • @Osalikioficial
    @Osalikioficial 4 หลายเดือนก่อน

    Really good video. Thanks

  • @AnasKhan-uw7vf
    @AnasKhan-uw7vf 5 หลายเดือนก่อน

    thanks mr.meraj ... thumbs up from Pakistan

  • @bigstar111
    @bigstar111 11 หลายเดือนก่อน +5

    Thank you so much! Extremely helpful!
    As sole owner LLC, are the quarterly payments mandatory?

    • @taxleverage
      @taxleverage 5 หลายเดือนก่อน +1

      Yes but they're based on prior year tax due, so it's possible they're not mandatory given your situation. Search safe harbor estimate payments and that's the calculation to determine the requirement.

  • @karleenaudibert35
    @karleenaudibert35 ปีที่แล้ว +3

    Everything you explained was very helpful! Thank you for sharing!

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      You're welcome. Glad it was helpful for you!

  • @sergiolozano5116
    @sergiolozano5116 6 หลายเดือนก่อน

    Thanks for sharing!

  • @vincentjohnson7786
    @vincentjohnson7786 10 หลายเดือนก่อน

    Great info!

  • @TheBookOfJane
    @TheBookOfJane ปีที่แล้ว +1

    Happy I found you! Great info New Sub

    • @NaviMarajCPA
      @NaviMarajCPA  ปีที่แล้ว

      Glad you’re here! 👍🏼

  • @shawndisho7378
    @shawndisho7378 2 หลายเดือนก่อน

    Amazing!!!!!!!!!!!!!

  • @wongjuan1
    @wongjuan1 ปีที่แล้ว +1

    thank you for the video

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      You're welcome!

  • @mila_myart
    @mila_myart 2 หลายเดือนก่อน

    ❤good information!!!!

  • @pasolero
    @pasolero 2 หลายเดือนก่อน

    Great video...very informative. Do you have recommendations for a payroll company for beginner in NYC?

  • @QValpo
    @QValpo หลายเดือนก่อน

    Fantastic breakdown, one question. If you have W2 income not related to the business, does the business income get added to the W2 income flow through the tax brackets or do they flow through the brackets separately?

  • @thunderbomb501
    @thunderbomb501 หลายเดือนก่อน

    Do you have a link to that spreadsheet? Amazing video, I watched it at 1.5x speed and didn’t need to rewind it was that straight forward ❤

  • @jatinranjan7954
    @jatinranjan7954 11 หลายเดือนก่อน

    Thank You for explaining these terms so lucidly. I hope you make a video on different Corporations ELIGIBILITY criterial as an individual business owner . Can a individual file a S corp or C corp by himself managing all the business ?

    • @cwright272
      @cwright272 10 หลายเดือนก่อน

      I'm not sure what state you reside, but in Ohio, I was able to file for any type of business entity he discusses in this video as well as a c-corp by myself, it just took some knowledge of which Ohio's gov websites I needed to visit. I did everything online without the help of a service/third party.

  • @RoxanaLuna-bm4hh
    @RoxanaLuna-bm4hh 4 วันที่ผ่านมา

    thank you!

  • @erikdong
    @erikdong ปีที่แล้ว +1

    Great breakdown. Thank you for sharing!

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      You're welcome. Thanks for the feedback and taking time to comment.

  • @budgeting4u932
    @budgeting4u932 ปีที่แล้ว +5

    Hi Navi, can you please share the tax estimate Excel file template?

  • @emmanuelmorales9402
    @emmanuelmorales9402 3 หลายเดือนก่อน

    Great video! Quick question, is the 40k w-2 salary for john a tax deduction/expense for the Scorp?

  • @yenildamelendez3011
    @yenildamelendez3011 ปีที่แล้ว +1

    Thank you!

  • @KoolKiddxD
    @KoolKiddxD ปีที่แล้ว +1

    Amazing!😊

  • @adriandiaz5688
    @adriandiaz5688 ปีที่แล้ว +2

    This was extremely clear, thank you!

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      You're welcome and thanks for the feedback! 👍

  • @831richram
    @831richram 3 หลายเดือนก่อน

    You’re the man bro!!! Great information bro!!! Is it a bad idea to ask if I could get 12:00 min of your time ? If so how ?

  • @moneylifetv1754
    @moneylifetv1754 ปีที่แล้ว +1

    greate video am gonna like this video

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      Thanks so much for the like and comment!

  • @jeffkayode
    @jeffkayode 8 หลายเดือนก่อน

    Thanks for this... I will like to know if this is also available for business registered by a non US resident?

  • @milesvaniglia7854
    @milesvaniglia7854 ปีที่แล้ว +3

    Excellent Video! Glad I got an S -Corp!

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      Thanks for the feedback! Glad to hear the S Corp is working out for you.

  • @ElementalWildfire
    @ElementalWildfire ปีที่แล้ว +1

    This is awesome. Thank you from a small business owner!

    • @NaviMarajCPA
      @NaviMarajCPA  11 หลายเดือนก่อน

      You're welcome and thank you for the feedback!

  • @TronStylias
    @TronStylias 8 หลายเดือนก่อน +1

    I learned how save money and not let IRS take more.

  • @psalas1
    @psalas1 10 หลายเดือนก่อน

    You are hired!!!

  • @Puppypaws-cr4ck
    @Puppypaws-cr4ck 2 หลายเดือนก่อน

    Great video! very well explained. had one question. if you do a s corp and using your example .. if john is married.. does he file that 60K held in s corp on his joint filing with his wife or does he file that separately. trying see if you can reduce your combined income bracket in paying taxes by doing an s corp. thank you!

  • @tharas-merch-llc
    @tharas-merch-llc 5 หลายเดือนก่อน

    Thanks Navi Maraj, I enjoyed learning with you. I have some questions though: If a person is a non resident single member LLC(also called as disregarded entity), can he/she no have to pay social security and medicare? Since those benefits is not for foreigner/non resident. If so, how is it done?🌎